Quantum Trading CIO: Gains in Twitter are Afoot

According to Quantum Trading Strategies CIO Sean Udall, the market is starting to figure out that skepticism in Twitter Inc TWTR and a singular focus on monthly active users (MAU) is “ludicrous.” Udall was recently a guest on Benzinga’s #PreMarket Prep.

Twitter, Udall points out, has never missed meeting analysts’ expectations on EPS during its four quarterly reports as a public company. Udall also has skepticism that the continued pair trade where traders go long Facebook Inc FB and short Twitter has run its course. That could send Twitter higher as well.

Udall also echoed comments from Justin Pulitzer, saying that he would prefer a price at earnings between $36.50 and $38, instead of at $42 – where the stock currently trades.

However, that caution aside, Udall thinks this quarter could shape up to be Twitter’s breakout, similar to when Facebook broke out in October 2013.

For trading ideas, Udall is fond of holding common stock and wrapping options strategies around that to create more value.

Watch the full interview here:

Don’t forget to tune in to Benzinga’s #PreMarket Prep broadcast Monday-Friday 8-9:45 a.m. ET for a live, interactive morning show with veteran traders and featured finance industry experts ready to answer your questions for the trading day.